Policy service department is the carrier or brokerage division responsible for handling in-force policy transactions and client-service requests after a contract is issued. Functions typically include beneficiary and address changes, billing questions, loan and withdrawal processing, ownership changes, and policy status updates. The department works closely with call centers, advisors, and back-office staff to ensure accurate, timely execution of requests while maintaining regulatory and privacy standards. Efficient policy service departments support retention and overall client satisfaction with life insurance and annuity products.

Advisors interact with policy service departments whenever clients need post-issue changes or information. They submit good-order forms, follow up on processing timelines, and interpret confirmation letters for clients. BGAs and IMOs often maintain dedicated service teams that liaise with carrier policy service on behalf of producers. Understanding how the policy service department operates helps advisors set realistic expectations about processing times, required documentation, and what can be handled via phone versus signed forms, improving both client experience and office efficiency.